Opportunity cost is an important concept in decision-making. It refers to the trade-offs that a person or a business faces when choosing between two or more alternatives. The opportunity cost of an action is the value of the next best alternative foregone, or missed out on when that action is taken.
Tag: Decision Making
What To Do When You’re Stuck In A Business Strategy Dilemma?
One of the toughest things any business owner or executive can experience is being stuck in a business strategy dilemma. It’s paralyzing and frustrating, and it can seem impossible to make a decision. But here’s the good news: You’re not alone. And there are ways to work through this.
7 Signs That You’re Penny Wise And Pound Foolish With Your Business
Is your business penny wise and pound foolish? Sometimes making penny wise decisions with your business can lead to being pound foolish in the long run. You may be able to save a little money in the short term, but if it means sacrificing essential functions or investments in your company, you could be doing more harm than good.
How To Use Popular Opinion For Tough Decisions At Work?
Leaders cannot duck or bury their faces in the mud when making tough calls at work. Leadership is tested when selling unpopular decisions to the team. How do you do that? “My way or the highway” does not work. It gets you obedience, not acceptance. Do you use popular opinion as a work around? Can you?
How to improve decision making? Reserve one chair for the Devil’s Advocate
We make too many decisions at the eleventh hour. The urgency and the pressure to decide quite often lead to incorrect decisions. When we look back at our decisions, we find out that some arguments were never made. Some doubts were never discussed. Volunteer to be the Devil in the next meeting and improve decision making.
How Perception Bias is Affecting Results and Success?
Our judgement, reactions and actions are influenced by our instincts and bias. Our experiences and learnings influence our instincts and bias. In life and at work, perception bias affects our judgement. Most of the times, we do not realize the implications of perception bias. Here are 3 tips to minimize the effects of bias.